Since our founding more than 20 years ago, Vermilion has been guided by our core values of Excellence, Trust, Respect and Responsibility. We believe that producing energy for the many people and businesses that rely upon it to meet their daily needs and sustain their quality of life is both a great privilege and a great responsibility.

Vermilion has achieved a consistent record of market out-performance over our more than 20-year history. Our self-funded, growth-and-income model seeks to create value for our shareholders while minimizing risk. Since introducing our dividend in 2003, we have increased it four times and we have never reduced it.

Vermilion’s operations are focused in three core areas, North America, Europe and Australia. Our global exposure provides us with stronger and more stable pricing, project investment diversification and a greater selection of business development opportunities

There is value beyond ourselves in the communities where we operate. We care enough to look for it. As a responsible energy producer, we are committed to giving back to the communities where our people live and work.

At Vermilion, our people deliver excellence daily, around the world. Supported by a strong leadership team, our staff drive a high performing, engaged, collaborative and community-minded culture that is the single most important factor in our success. We have a clear and proven vision for long-term growth. Be a part of it.

Since our founding more than 20 years ago, Vermilion has been guided by our core values of Excellence, Trust, Respect and Responsibility. We believe that producing energy for the many people and businesses that rely upon it to meet their daily needs and sustain their quality of life is both a great privilege and a great responsibility.

Vermilion has achieved a consistent record of market out-performance over our more than 20-year history. Our self-funded, growth-and-income model seeks to create value for our shareholders while minimizing risk. Since introducing our dividend in 2003, we have increased it four times and we have never reduced it.

Vermilion’s operations are focused in three core areas, North America, Europe and Australia. Our global exposure provides us with stronger and more stable pricing, project investment diversification and a greater selection of business development opportunities

There is value beyond ourselves in the communities where we operate. We care enough to look for it. As a responsible energy producer, we are committed to giving back to the communities where our people live and work.

At Vermilion, our people deliver excellence daily, around the world. Supported by a strong leadership team, our staff drive a high performing, engaged, collaborative and community-minded culture that is the single most important factor in our success. We have a clear and proven vision for long-term growth. Be a part of it.

Vermilion Energy Inc. Announces Farm-in Agreement in Germany

July 28, 2015

CALGARY, July 28, 2015 /CNW/ - Vermilion Energy Inc. ("Vermilion", the
"Company", "We" or "Our") (TSX, NYSE: VET) is pleased to announce that
we have entered into a farm-in agreement (the "Farm-in" or the
"Agreement") with Mobil Erdgas-Erdӧl GmbH ("MEEG") and BEB Erdgas und
Erdӧl GmbH & Co.KG ('BEB"). MEEG is 100% held by ExxonMobil and BEB is
jointly held by ExxonMobil and Royal Dutch Shell. ExxonMobil
Production Deutschland GmbH ('EMPG") currently operates and manages
both MEEG's and BEB's interests in the exploration licenses involved in
the Farm-in. The Agreement, signed July 27th, 2015 and with an
anticipated closing date of January 1, 2016, remains subject to
customary conditions and regulatory approvals.

The Farm-in will provide Vermilion participating interest in 19 onshore
exploration licenses in northwest Germany, comprising approximately
850,000 net acres of oil and gas rights (100% undeveloped) (the
"Assets"). Under the terms of the Agreement, Vermilion will acquire the
Assets (which represent 50% of MEEG's and BEB's current interests in
these licenses) in exchange for committing to the financial carry of
the remaining 50% of MEEG's and BEB's interests in 11 gross (6 net)
exploratory wells over the next five years. At present, approximately
75 exploratory and semi-exploratory leads and prospects have been
identified in the Rotliegend, Carboniferous, Triassic and Zechstein
formations on these Assets.

Eleven of the 19 licenses are currently operated by EMPG, which will
transfer operatorship for the exploration phase to Vermilion. The
Agreement also grants Vermilion proportional ownership to EMPG
proprietary data spanning the Assets. No existing oil or gas production
is being acquired by Vermilion in the Farm-in.

The Farm-in provides Vermilion with a very large, nearly contiguous land
block in the heart of the North German Basin. This basin has
cumulative production of more than 2 billion barrels of oil and 34
trillion cubic feet of natural gas since its discovery, representing
approximately 97% of Germany's historical onshore production. We
believe that the Assets are prospective for both oil and natural gas.

The Farm-in follows our entry in early 2014 into the exploration and
production business in Germany, a jurisdiction with a long history of
oil and gas development activity, a consistent fiscal framework and low
political risk. The Farm-in is consistent with our growing European
focus, and will increase our exposure to the strong fundamentals and
pricing of the European natural gas market. The Assets are a natural
and synergistic expansion to our existing German and Netherlands
portfolios, and share the same subsurface genre and development
approach. We believe that our capability in conventional oil and gas
exploration and production in onshore Europe, coupled with our track
record of accretive European consolidation, positions us for future
development and expansion opportunities in both Germany and the greater
European region.

About Vermilion

Vermilion is an oil-leveraged producer that seeks to create value
through the acquisition, exploration, development and optimization of
producing properties in North America, Europe and Australia. Our
business model targets annual organic production growth of 5% or more
along with providing reliable and increasing dividends to investors.
Vermilion is targeting growth in production primarily through the
exploitation of light oil and liquids-rich natural gas conventional
resource plays in Canada and the United States, the exploration and
development of high impact natural gas opportunities in the Netherlands
and Germany, and through drilling and workover programs in France and
Australia. Vermilion also holds an 18.5% working interest in the
Corrib gas field in Ireland. Vermilion pays a monthly dividend of
Canadian $0.215 per share, which provides a current yield of
approximately 6%. Management and directors of Vermilion hold
approximately 6% of the outstanding shares, are committed to
consistently delivering superior rewards for all stakeholders, and have
delivered a 20-year history of market outperformance. Vermilion trades
on the Toronto Stock Exchange and the New York Stock Exchange under the
symbol VET.

Natural gas volumes have been converted on the basis of six thousand
cubic feet ("mcf") of natural gas to one barrel equivalent of oil.
Barrels of oil equivalent (boe) may be misleading, particularly if used
in isolation. A boe conversion ratio of six thousand cubic feet to one
barrel of oil is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

DISCLAIMER

Certain statements included or incorporated by reference in this press
release may constitute forward-looking statements under applicable
securities legislation. Forward-looking statements or information
typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", or
similar words suggesting future outcomes or statements regarding an
outlook. Forward looking statements or information in this press
release may include, but are not limited to:

the anticipated closing date of the Farm-in;

the number and classification of future development drilling
opportunities;

the expectation that fiscal and regulatory policies in Germany remain
supportive of continued investment;

exploration and development capital expenditure expectations; and

development plans and strategic objectives.

Statements relating to reserves are deemed to be forward-looking
statements as they involve the implied assessment, based on certain
estimates and assumptions, that the reserves described exist in the
quantities predicted or estimated, and can be profitably produced in
the future.Such forward-looking statements or information are based on a number of
assumptions all or any of which may prove to be incorrect. In addition
to any other assumptions identified in this document, assumptions have
been made regarding, among other things:

satisfaction of all conditions to the proposed Farm-in and receipt of
all necessary approvals.

the ability of Vermilion to obtain equipment, services and supplies in a
timely manner to carry out planned development activities;

the ability of Vermilion to market oil and natural gas successfully to
current and new customers;

the timely receipt of required regulatory approvals;

currency, exchange and interest rates;

future oil and natural gas prices; and

Management's expectations relating to the timing and results of
development activities.

Although Vermilion believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward looking statements because
Vermilion can give no assurance that such expectations will prove to be
correct. Forward-looking statements or information are based on
current expectations, estimates and projections that involve a number
of risks and uncertainties which could cause actual results to differ
materially from those anticipated by Vermilion and described in the
forward looking statements or information. These risks and
uncertainties include but are not limited to:

the ability of management to execute its business plan;

the risks of the oil and gas industry, both domestically and
internationally, such as operational risks in exploring for, developing
and producing crude oil and natural gas and market demand;

the ability of Vermilion to add production and reserves through
development and exploration activities;

general economic and business conditions;

the possibility that government policies or laws may change or
governmental approvals may be delayed or withheld;

uncertainty in amounts and timing of royalty payments;

risks associated with existing and potential future law suits and
regulatory actions against Vermilion; and

other risks and uncertainties described elsewhere in this document or in
Vermilion's other filings with Canadian securities regulatory
authorities.

The forward-looking statements or information contained in this document
are made as of the date hereof and Vermilion undertakes no obligation
to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless required by applicable securities laws.